BancorpSouth sees first-quarter earnings boost
by April 23, 2012 9:29 pm 93 views
Tupelo, Miss.-based BancorpSouth announced first-quarter net income of $22.9 million, a wide swing from a $500,000 loss during the first quarter of 2011.
The bank said the earnings were boosted by a $10 million reduction in the provision for credit losses — a fund set aside to cover potential bad loans.
Per share earnings of 25 cents for the quarter bested the consensus estimate of 17 cents per share.
"Our results for the first quarter reflect our highest level of quarterly earnings in over two years," Aubrey Patterson, chairman and CEO of BancorpSouth. "We are also pleased to report additional meaningful improvement in asset quality. Earnings for the quarter reflect decreases in credit costs as a result of asset quality improvement as well as another exceptional quarter for our noninterest revenue lines of business, particularly our mortgage operation."
According to the bank’s report, non-performing loans declined $37 million, or 11.5%, during the first quarter of 2012 to $285.2 million at March 31, 2012 compared with $322.3 million at December 31, 2011. The bad loan account declined $139.8 million, or 32.9%, from $425 million at March 31, 2011.
Total loans 30-89 days past due decreased during the first quarter of 2012 to $29 million at March 31, 2012, from $37.5 million at Dec. 31, 2011.
“Over the past several quarters, significant efforts have been focused on asset quality improvement. Although continuing to improve asset quality is certainly still the top priority, we recognize the importance of focusing on quality loan production and improving efficiency,” Patterson noted in the earnings report. “While we are encouraged by recent economic trends, we remain cautious about the prospects of significant near-term growth given the competitive landscape and subdued loan demand.”
While reducing bad loans from its books, the bank is still generating mortgage revenue. The bank’s mortgage business produced $395.1 million of new loans during the first quarter.
BancorpSouth Inc. is a financial holding company with more than $11 billion in assets as of Dec. 31. The company operates more than 280 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas.
Shares of BancorpSouth (NYSE: BXS) closed Monday (April 23) at $12.85, down 10 cents. The earnings report was issued after the markets closed. During the past 52 weeks, the share price has ranged from a $14.93 high to a $8.23 low.